MARTIN LEWIS, money saving expert, offered advice on Help to Buy ISA vs Lifetime ISA for savers during an appearance on BBC Radio 5 yesterday. Which is better? Martin called the issue “complicated”.

Martin Lewis, 47, offered advice in ISAs to a caller on the BBC radio show yesterday. Angus, 23, asked the money saving expert: “Which is better - LISA or Help to Buy?” The financial journalist broke down the differences, and responded: “You probably don’t have money to save right now. What I would do right now is go and put a quid in both. “A quid in the Help to Buy ISA because that closes on the 20th November and if you don’t have one open you can’t open one after that, but if you open one the facility lasts for 10 years.

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If you are definitely going to buy a house then a Lifetime ISA is better because you can put more money in to it and the 25 percent bonus they give you is better

Martin Lewis, Money Saving Expert

“A quid in the Lifetime ISA because you have to have a Lifetime ISA for a year before you can use it but just putting a quid in it starts off that years countdown so that you’ve got it open.”

Explaining what to do next, Martin said: “Then the question is - and it is quite a complicated one - if you are definitely going to buy a house then a Lifetime ISA is better because you can put more money in to it and the 25 percent bonus they give you is better.

“If you are not definitely going to buy a house, a Help to Buy ISA is better because you can withdraw money from that not for a house penalty free.

“If you are going to buy a house worth over £250K and you are outside London, a Lifetime ISA is better because the cap on property size is £250K with a Help to Buy ISA except London, but it is £450K on the Lifetime ISA. It is quite a complicated one.”

Martin also responded to a text sent in for him seeking advice on what to do with an inheritance of £10,000.

Martin Lewis, money saving expert, has detailed the pros and cons of the LISA & Help to Buy ISA (Image: Getty Images)

The listener’s son wanted to put the money away for three years, and wanted to know which account Martin most recommended for the money.

Martin advised: “If he wants to put it away for three years, he would go for one of the top three year fix savings accounts on the market - is that a bit too long for fix? Maybe go for two.

“If he doesn’t want to touch the money at all in that time, you’re looking at something like Access Bank is paying 2.1 percent on a two year fixed account, £10K sits within the savings safety limits, also Wylans Bank is up there too, top easy access is around 1.5 percent but that’s going to drop - they are all dropping to around 1.4 percent at the moment.

“So that would be the simple answer. I’m assuming the fact that he’s a student would mean that he doesn’t have any other debts.

“That’s quite important, if he did and he had debts he was paying interest on (excluding the official student loan), then I would be looking at using the money to clear the debts but putting it in a fixed rate savings account would be the easy answer.”